Impala Platinum Holdings Limited · JSE:IMP
Impala Platinum — H1 FY2002 Earnings Presentation
20 slides from Impala Platinum's earnings presentation, February 2002
Slide 1: Interim Results February 2002 – Highlights
INTERIM RESULTS FEBRUARY 2002 1 Highlights Good performance as attributable income and headline earnings rise by 2.4%, despite $ price market index decreasing by 35% Sales volumes up 13% Solid operational performance Growth projects on track 2 1
Slide 2: Interim headline EPS and DPS; Key ratios
Interim headline EPS and DPS 3 303 3500 3 238 3000 2500 SA cents 2000 1 420 1500 1 137 1 100 1000 683 304 340 500 60 170 0 1997 1998 1999 2000 2001 EPS DPS 3 Key ratios FY 02 FY 01 FY 00 Interims Gross margin achieved 48.7 57.2 44.3 (%) Return on equity (%) 65.3 82.6 55.8 Return on assets (%) 55.8 7
Slide 3: Group structure; Income streams
Group structure Implats 100% 100% 83% 10% 45% 15% 35% 27% Impala Winnaars- Barplats Aquarius Two Rivers Zimplats Mimosa Lonplats Platinum hoek Limited Impala Refining 100% Services (IRS) Toll refining 5 Income streams Impala Refining Services (IRS) Income from Mining operations processing 3rd party
Slide 4: The Market
THE MARKET 7 Market overview Impact of slowing economies counteracted by resilience in Chinese jewellery and US/European car markets 8 4
Slide 5: Sales volumes; Average price achieved
Sales volumes +13% growth 000 oz 1000 900 800 700 600 500 400 300 200 2000 Dec 2000 2001 Dec 2001 Pt Pd Rh 9 Average price achieved for six months Dec 01 Dec 00 % Platinum ($/oz) 471 572 (17.7) Palladium ($/oz) 399 718 (44.5) Rhodium ($/oz) 1 268 2 043 (37.9) Nickel ($/ton) 5 122 7 732 (33.8) Basket
Slide 6: Platinum and palladium supply and demand
Platinum supply and demand Forecast 7000 6000 5000 Investm ent ‘000 oz 4000 Industrial Jew ellery 3000 Autom obile Supply 2000 1000 0 1996 1997 1998 1999 2000 2001 2002 11 Palladium supply and demand Forecast 10000 9000 8000 7000 Other 6000 Dental ‘000 oz 5000 Electronics 4000 Autom obile 3000 Suppl
Slide 7: Outlook; Financials
Outlook Fundamentals for platinum remain sound in medium to long term – Supported by auto and jewellery markets – South African expansions required to balance market – Further upside – fuel cells, Indian jewellery market and even stronger growth in China Future of palladium hinges in short term
Slide 8: Turnover; Average R/$ exchange rate achieved
Turnover R million Dec ‘01 Dec ‘00 % Turnover 5 301 5 384 (1.5) Sales volumes 661 Metal prices (1 642) Exchange rate 898 83 15 Average R/$ exchange rate achieved 11.60 12 10 9.06 7.28 8 6.11 6 4 2 0 Dec-99 Dec-00 Dec-01 Current 16 8
Slide 9: Income statement (1) and (2)
Income statement (1) R million Dec ‘01 Dec ‘00 % Turnover 5 301 5 384 (1.5) Cost of sales 2 719 2 336 (16.4) Gross cash costs up 12.8% Impala cash costs rise 8.8% – Refining costs increased by only 4.4% 17 Income statement (2) R million Dec ‘01 Dec ‘00 % Turnover 5 301 5 384 (1.5) Cost of sales
Slide 10: Capex; Dividend policy
Capex Rand (million) 2500 R2 090 m 2000 1500 R1 300 m 2nd half 1000 R783 m 500 1st half 1st half 0 FY00 FY01 FY02 19 Dividend policy Remains unchanged at 1.9 times cover on a proposed basis Split remains approximately one-third payout at interims Cash balances reduced: – Provisional tax paymen
Slide 11: Review of Operations; Impala Platinum – Safety
REVIEW OF OPERATIONS 21 Impala Platinum - Safety Three of four fatal accidents related to FOG DuPont implementing Behavioural Safety Management Programme Five Platinum Rules implemented in January 0.25 0.2 Fatal injury 0.15 frequency 0.1 rate 0.05 0 s e 98 99 00 01 k im ar av FY FY FY FY hm er
Slide 12: Production; Impala Platinum – Mining operations
Production ‘000 oz Dec ’01 Dec ‘00 % Total platinum 680 659 3.2 Pt from Impala lease area 507 516 (1.7) Impala Refining Services 173 143 21.0 Toll-refining 88 86 2.3 23 Impala Platinum – Mining operations Tons milled down 3.8% Headgrade increase of 3% Unit cost/oz platinum up 9.6% – Wage incre
Slide 13: Processing and refining; Management of HIV/AIDS
Impala Platinum - Processing and refining Mineral Processes UG2 plant – Upgrade completed with 30% increase in throughput – Recoveries marginally better than pre-upgrade Overall metal recoveries up 2.8% Refineries Good performance First-pass yields on all metals highest in the industry 3%
Slide 14: Crocodile River; Impala Refining Services
Crocodile River Satisfactory safety performance - three lost time injuries Concentrator recoveries improved to above 70% First underground ore by April 2002 22 000 oz platinum for half-year– on target 27 Impala Refining Services Continues to deliver excellent growth First concentrates fr
Slide 15: Strategic Interests and Alliances; Marula Platinum
Marula Platinum (Winnaarshoek) New name through consultation Mine plan and capex being finalised Two-stage build-up to capacity EMPR approved in December Stoping operations to commence in 2003 Concentrator will be operational in 2004 29 STRATEGIC INTERESTS AND ALLIANCES 30 15
Slide 16: Aquarius; Lonplats
Aquarius LOM contracts for additional concentrate from Kroondal and Marikana being finalised (140 000 Pt oz) Restructuring and refinancing of Aquarius SA expected by end Feb – Conversion of debt into equity raising Implats’ stake – Subject to regulatory/shareholder approval 31 Lonplats Attribu
Slide 17: Two Rivers; Zimplats
Two Rivers Evaluation drilling in progress Bulk sample extracted in January 2002 Feasibility to be completed in second half of the year Expected output of 100 000 platinum oz per annum by 2004 33 Zimplats 77km Ngezi to Selous road complete First ore delivered to SMC SMC concentrator op
Slide 18: Mimosa Platinum; Exploration/Development
Mimosa Platinum Expansion project has commenced Production increase to 68 000 platinum oz per annum by 2003 Good prospects for further growth 35 Exploration/Development Kennedy’s Vale (SA) Birch Lake JV (USA) Franconia Minerals Corporation (USA) River Valley (Canada) Cana Brava (Braz
Slide 19: Prospects
PROSPECTS 37 Prospects Given malaise in world economy, pgm market has remained satisfactory Outlook for platinum particularly sound Devaluation of Rand will have positive impact on earnings in second half Growth strategy – 2 million platinum oz by 2006 FY2002 earnings marginally below record
Slide 20: Interim Results February 2002
INTERIM RESULTS FEBRUARY 2002 39 20
Impala Platinum Holdings — H1 FY2002 Earnings Presentation on 6ix